luxury products are in high demand

   Since the collapse of Lehman Brothers in 2008 and the subsequent global financial crisis, one of the few sectors in the luxury industry has strong.

The demand for luxury goods seemed insatiable - and contrary to the good performance of the market leaders, such as PPR, Richemont and LVMH - especially in the BRIC countries.

However, the results in the last few months were a bit of a slowdown, due to weak growth in China and the collapse of the euro zone continue to catalyze.

In particular, sales of luxury soft cloth, such as ready-to-wear and accessories of leather fell, while the management team in the industry gave a cautious outlook on the long-term sustainability of stellar growth.

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For premium luxury brands hard, but the sky is still the limit. While some large companies like Tiffany suffered seem slightly in recent months, the luxury watch and jewelry companies have weathered the crisis relatively unscathed. Some brands that are traditionally used for their clothing and accessories, including Chanel, Versace, and more recently, Louis Vuitton, portfolio rebalancing known in the traditional sector.

Brand sales share 19 percent of global jewelry market, versus 50 percent and 38 percent in leather goods and eyewear sectors. This is what a lot of untapped potential market, especially given the appetite for the "status symbol" consumption in emerging markets.



Industry characteristics have made it easier to isolate from the effects of market volatility. If 2009 saw a drop in Swiss watch exports by 30 percent, the companies have responded by expanding its global network to streamline the retail and wholesale.

The last three years have seen by continuous organic growth of over 20 percent. "Luxury brands Elite drives increased steadily for two reasons," explains Thomas Mesmin, analyst at Cheuvreux luxury.

. "Watch and jewelry is rarely offer discounted prices or affordable lines, uneven wear and accessories collections But more importantly, they are still of the customer as the most portable form of transferable wealth seen in times of economic uncertainty -. Much reliable than stocks and shares "

Stanislas de Quercize, CEO of Van Cleef & Arpels agrees. "Luxury has more drive long-term value luxury soft among the raw materials from which they are made. Generations of prestigious jewelry has been a refuge for the value."

He says customers are more demanding than they were before 2008. "Can you have to be reassured about the quality, origin and ultimate competence. If they seek to preserve the value, then the things that make a big difference. Since we are a brand that offers only the best is to see this as a reassuring sign for our company. "

An important trend is the development of the art of watchmaking and jewelry sales at auction houses.

Larry Pettinelli, President of Patek Philippe in North America, said auction underpinned business brand in the last 20 years. "We have always encouraged their customers to watch through the generations.

"Now they are aware of the passage of time is a value - a space have considerable value when sold 30 years later, the demand from collectors vintage models is huge -. It's a way to make your fortune to enjoy in a way that also to guarantee. "

Pettinelli think this applies only to marks of the heritage industry's luxurious as Rolex and Patek Phillipe them. Protection against fluctuations in foreign markets "The approval of the third vehicle means that the industry is suffering less ups and downs."

Rahul Kadakia, head of jewelry at Christie high in New York, says that in December 2008, when the world markets were depressed with her most, the industry has seen a turnover of $ 24.3 million Wittelsbach diamond, jewelry ever sold the most expensive house .

Selling gems on the rise since record sales before the accident. Moreover, the size of the company drive luxury Christie has doubled in the past three years: the first half of 2012, sales of watches and jewelery grew 365 million against $ 338 million for the full year 2009.

While the division continues. The same number of parts and a lot at auction every year, strong demand for exquisite pieces, which means often offer only limited, that the prices are higher edges, also

. "The ever-increasing prices - and the willingness to pay to continue - shows how deep the market is," said Kadakia "Buyers simply do not see the value in products, they expressed their appreciation for heritage and craftsmanship."

Inevitably, the influence of Chinese consumers to attract too much attention. The global market for luxury goods is expected that 15 to 20 percent in 2012 to grow. Euro Monitor International has reported that. Chinese watches and jewelery worth only $ 4 billion EUR with a planned expansion regular rate of 17 percent per year until 2017

The sector is particularly strong thanks to a growing middle class buyers ambitious, give a strong cultural trend for gift, and used the popularity of watches and jewelery as objects of trade and political corruption.

Unlike western markets where luxury consumption alpha tends to be an older woman in China, indicated the majority of sales to young men, the ostentatious signs of newfound wealth - thus the popularity of luxury watches.

But. Industry observers have warned that the Chinese luxury consumption should not be affected - or underestimated.

Patti Wong, Chairman of Hong Kong-based diamond Sotheby, said that since the launch of its business unit in 2005, they saw a big change in spending habits and requirements - including a pursuit of knowledge and absolute quality.

"Chinese customers are primarily buyers of investment, with a dip in the market, is this mentality inevitably strengthened. Not only have the prices recovered after the crash, they have far exceeded their pre-2008 peak."

She says the most popular gemstones with first-time buyers are usually white round brilliant diamonds.

"The last two years a very high interest of consumers in China have seen, although the boom is slowing down." Wong says.

"We see the economic downturn, but the gross domestic product by about 8 percent, which you can not see elsewhere risen."

However, some commentators have emphasized the resilience of mature markets. Christie said the majority of buyers when selling € 116m Elizabeth Taylor Jewelry last year came from Europe or the United States and most of the larger companies sales are to customers in the West.

Others argue that there is a movement away from the sales analysis on a considerably from country to country. Regions are increasingly relevant after 2008.

Cheuvreux estimates that China produces 30 percent of sales of watches and jewelry world, Chinese travelers are responsible for over 50 percent of total sales accounted for spending in malls attractions such as London, Paris and New York.

Pettinelli cautious optimism about the outlook for the overall industry. "Many wealthy consumers are reining in spending -. Stand you not when others suffer, especially in view of the elections' s Luxury watch company ultimately never a steep drop ... but we're very happy."

So what lies ahead for watches and jewelery, in the middle of a global recession?

"A kind of slowdown is inevitable," says Thomas Mesmin Cheuvreux. "However, I'm not worried. Twenty percent growth over last year was never be sustainable. I am confident that we will continue to see low double-digit growth for the second half of this year and a good part of 2013.

"Compared to almost all areas of the industry on the other hand, sales of luxury brands drives is thriving."



The fashion world is with companies that have low-end to the sales increase littered. Sometimes it works, and even manages to give a boost to high-end lines, and sometimes he pulls a brand that has spent years building a following information carefully.

With the launch this month of a series of silver jewelry Pomellato Italy, has long been known for its gold and skillfully handmade stone studded creations try his luck with the precious metal lower.

The new line of jewelry as Pomellato 67 to renew the company's founder 45 years ago, will make his debut in the United States in Saks Fifth Avenue stores and Pomellato, then cross to Italy and the rest of Europe in November.

Each room has been compiled from the company's archives - and always reinterpreted handcrafted by skilled silversmiths Pomellato has - the traditional unequal link chains, earrings, bracelets and charms include.

Andrea Morante, CEO and a former investment banker at Credit Suisse and Morgan Stanley, said: "gold bracelets or chains that we would 40 years ago today to be difficult, and would be very expensive in this spirit, our creative director, said:." Why not mix, with money as the price of gold is beyond the scope and why the designs that we in the archives of the gold while gracefully, giving them a contemporary feel

"Often, when companies use the money because it is less valuable they are. Less about the absolute quality of production"

But he stressed: "We will keep the quality element that customers who need to ensure we do not lower our standards we would never endanger the reputation of the brand and the niche has Pomellato..

The company, with sales last year EURO138m, 12 percent in 2010, reached its archives in the 1960s, the early 1970s for the new line.

"It was a time of change, and we wanted to capture with the collection of money," says Morante.

"In the world of fashion, Miuccia Prada gave an indication that the 60s and early 70s could return as a fashion or way of being, and 67 fits into this. We are always looking for fashion inspiration."

Since its founding in 1967, Pomellato is positioned somewhere between high-end jewelers such as Tiffany, Cartier and Bulgari and low-end manufacturers.

Appropriate to make the idea behind the creation of Pomellato jewelery was to women as everyday accessories could buy them for themselves, rather than waiting to respond as a gift.

The company has. The map as well as with women who played 65 percent of the customers especially high among high-end jewelers

At the end of 2010 the company began an aggressive marketing campaign by men in the Italian sports daily La Gazzetta dello Sport that attempts affordability jewelry business is emphasized. Pomellato 67 tried a similar approach in an attempt to appeal to a new type of consumer.

"By raising money, we will reach out to new customers," says Morante.

"Young people may start buying silver Pomellato, and if they feel comfortable with what it represents, can spend gold. And we might also like Pomellato Pomellato traditional customers could buy 67 items."